Kelly Services (NASDAQ:KELYB) and Randstad (OTCMKTS:RANJY) Head-To-Head Review

Randstad (OTCMKTS:RANJY) and Kelly Services (NASDAQ:KELYB) are both business services companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, dividends, analyst recommendations, institutional ownership, valuation, risk and earnings.

Profitability

This table compares Randstad and Kelly Services’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Randstad	1.24%	11.13%	4.05%
Kelly Services	-6.44%	3.07%	1.41%

Dividends

Randstad pays an annual dividend of $0.73 per share and has a dividend yield of 5.0%. Kelly Services pays an annual dividend of $0.30 per share and has a dividend yield of 1.8%. Randstad pays out 80.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kelly Services pays out -3.9% of its earnings in the form of a dividend.

Risk & Volatility

Randstad has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Kelly Services has a beta of 0.71, indicating that its share price is 29% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Randstad and Kelly Services, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Randstad	1	3	0	0	1.75
Kelly Services	1	0	0	0	1.00

Institutional and Insider Ownership

0.0% of Randstad shares are owned by institutional investors. Comparatively, 0.2% of Kelly Services shares are owned by institutional investors. 93.1% of Kelly Services shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Randstad and Kelly Services”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Randstad	$26.10 billion	0.20	$338.29 million	$0.91	16.03
Kelly Services	$4.25 billion	0.14	-$254.10 million	($7.60)	-2.20

Randstad has higher revenue and earnings than Kelly Services. Kelly Services is trading at a lower price-to-earnings ratio than Randstad, indicating that it is currently the more affordable of the two stocks.

Summary

Randstad beats Kelly Services on 11 of the 14 factors compared between the two stocks.

About Randstad

Randstad N.V. provides solutions in the field of work and human resources (HR) services. The company provides temporary staffing and permanent placement services; job posting; and résumé services on digital platforms. It offers inhouse, enterprise and digital, and tech suite services. In addition, the company provides managed services programs, recruitment process outsourcing, outplacement and career development, and online talent acquisition. It has operations in North America, France, the Netherlands, Germany, Belgium, Luxembourg, Italy, Iberia, other European countries, and internationally. The company was formerly known as Randstad Holding NV and changed its name to Randstad N.V. in April 2018. Randstad N.V. was founded in 1960 and is headquartered in Diemen, the Netherlands.

About Kelly Services

Kelly Services, Inc. engages in staffing and workforce solutions. It operates through the following segments: Americas Staffing, Global Talent Solutions, and International Staffing. The Americas Staffing segment delivers temporary staffing, as well as direct-hire placement services, in a number of specialty staffing services, including office, education, marketing, electronic assembly, light industrial, science, engineering, and information technology in United States, Puerto Rico, Canada, Mexico and Brazil. The Global Talent Solutions segment offers outsourcing, consulting, and centrally delivered staffing business. The International Staffing segment relates to branch-delivered staffing business in the Europe, Middle East, and Africa region, as well as in the Asia Pacific. The company was founded by William Russell Kelly on October 7, 1946 and is headquartered in Troy, MI.